SOME SOLUTIONS FOR THE DEVELOPMENT OF CONSUMER LENDING AT TECHCOMBANK HOANG QUOC VIET

SOME SOLUTIONS FOR THE DEVELOPMENT OF CONSUMER LENDING AT TECHCOMBANK HOANG QUOC VIET

FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT

-

*** -LƯU THỊ KHÁNH VÂN

Topic:

SOME SOLUTIONS FOR THE DEVELOPMENT OF CONSUMER LENDING

AT TECHCOMBANK HOANG QUOC VIET

Hanoi- May, 2012

FACULTY OF FOREIGN LANGUAGES

ENGLISH FOR BUSINESS DEPARTMENT

-

LƯU THỊ KHÁNH VÂN

SOME SOLUTIONS FOR THE DEVELOPMENT OF CONSUMER LENDING

AT TECHCOMBANK HOANG QUOC VIET

Supervisor:

Nguyễn Thị Phong Lan

Hanoi – May, 2012

To finish this report, I am deeply grateful to all those who have shared ideas,valuable comments and encouragement during my writing of this paper

First of all, I would like to express the deep sense of gratitude to my supervisor,

Ms Nguyen Thi Phong Lan for her useful guidance, critical comments and valuablesuggestions on this report Without her help, this report could not have been completed

Besides, my sincere thanks also give to the Faculty of Business English,National Economics University for the devoted teaching of all the lecturers and forgiving me the knowledge and studying methods.Their teaching not only helps me gainvaluable knowledge and skills during four years but also lays the foundation for myfuture work

Next, I would like to express my special thanks to the staff at the TechcombankHoang Quoc Viet Branch for their big support so that I could finish my internship thereand finish the paper successfully

Last but not least, I wishes to extend my thanks to my family and friends fortheir support, contribution and encouragement in the making of this report

However, owing to my lack of experience and knowledge as well as the limitedscope of the research, some shortcomings and mistakes are unavoidable Please kindlytake into account

LIST OF CHARTS iv

LISTS OF ABBREVIATIONS v

EXECUTIVE SUMMARY vi

INTRODUCTION 1

Introduction of the research topic and rationale 7

Research questions 7

Scope of the research 8

Methodology

8 CHAPTER 1 – INTRODUCTION 1.1 Introduction of Techcombank Hoang Quoc Viet Branch: 1

1.1.1 Establishment 1

1.1.2 Organizational Structure 2

1.1.3 Functions and missions 2

1.2.Consumer loans activity in Hoang Quoc Viet Branch 3

1.2.1 Orientations for consumer loans period 2009- 2012 3

1.2.2 Overview of the current consumer loans activity and its shortcomings 4

CHAPTER 2: THEORETICAL FRAMEWORK 5

2.1 Definition of lending 5

2.2 Features of lending 5

2.3 The history emergence of consumer loans 7

2.4 Overview of consumer loans in Vietnam 7

2.5 Definitions of consumer

loans 8

2.5.1 The concept of consumer loans 9

2.5.2 Characteristics of consumer loans 10

2.5.3 Classification of consumer loans 12

2.6 The role of consumer loans 14

2.7 Benefit of consumer loans 16

2.8 Factors affecting the activity of consumer loans 17

2.8.1 Customers 17

2.8.2 The branch 18

2.8.3 Socio- economics factors 19

CHAPTER 3 – ANALYSIS AND FINDINGS 20

3.1 Overview of business operations at Techcombank Hoang Quoc Viet (THQV) in the period 2009-2011 .20

3.2 Current situation of consumer loans operation at THQV 20

3.2.1 Regulations of making consumer loans 21

3.2.2.Procedures of making consumer loans 22

3.3 Overall assessment on the rating structure for consumer loans 23

3.3.1 The deliquency rate of consumer loans 23

3.3.2 Profits on credit loans 24

3.4 Achievements 26

3.5 Weaknesses and reasons 28

3.5.1 Weaknesses 29

3.5.2 Reasons 29

CHAPTER 4 - RECOMMENDATIONS 30

4.1 Some recommendations for the development of consumer lending at THQV 30

related to consumer loans 31

4.1.2 Developing a proper and attractive strategies for consumer loans to customers 32

4.1.3 Developing marketing strategies 33

4.1.4 Keeping developing continuouly banking technology 34

4.1.5 Improving the quantity as well as the quality of the human resources 34

4.2 Submitting proposals to the upper management system 34

CONCLUSION 34

APPENDIX 35

REFERENCE 36

LIST OF CHARTS

LIST OF TABLES

Table 1 The procedures of making credit loans in Techcombank

Hoang Quoc Viet

16

Table 2

The rating structure for consumer loans at the Techcombank

LISTS OF ABBREVIATIONS

 THQV: Techcombank Hoang Quoc Viet

 Vietinbank:Vietnam Joint Stock Commercial Bank for Industry and Trade

 Vietcombank: Vietnam Joint Stock Commercial Bank for foreign trade ofVietnam Agribank: VietnamBank for Agriculture and Rural Development

 BIDV: Bank for Investment and Development

 ACB: Asia Commercial Bank

 MB: The Military Commercial Joint- Stock Bank

 TienPhong Bank: Tien Phong Commercial Joint- Stock Bank

 SHB: Saigon – Hanoi Commercial Joint Stock Bank

EXECUTIVE SUMMARY

Consumer lending plays an important role in the development of commercial banks InVietnam, personal credit activities are increasingly expanding, attracting many banks,individuals and households In the near future, these activities will certainly growmore, not only banks but also other financial institutions

During my internship in Techcombank Hoang Quoc Viet at the department ofCredit, I have gained some understanding of consumer loan operations and marketingactivities Thus, based on primary theories and practical experiences on the branch onthis field, I have decided to choose the following topic for my internship report: “Somesolutions for the development of consumer lending at Techcombank Hoang Quoc Viet

”

The purpose of this report is to analyze the current situation of consumerlending activity at THQV in connection with the impact of economic environment Theresult gained from the analysis is used to assess the efficiency of THQV’s consumer

loans and find out the strength, the weakness as well as the reason for its shortcomings.Then, based on the limitations, this report puts forward some suggestions for thedevelopment of consumer lending.

Apart from the introduction and conclusion, my final report is divided into fourchapters

Chapter 1: Introduction In this first chapter, I gave a brief overview of theTHQV’s establishment, organizational structure as well as its functions and missions.Besides, I introduce some general information about the consumer lending with regards

to orientations of THQV and its current status

Chapter 2: Theoretical framework This chapter will provide readers with theknowledge of credit, consumer lending and an essential background related toconsumer loans at THQV

Chapter 3: Analysis and Findings This main chapter will analyze the figure andthe assessment of the current situation Some limitations and shortcomings of the entitywill also be drawn out

Chapter 4: Recommendations This final chapter is supposed to give somesolutions to improve and promote the consumer lending business at THQV

Introduction of the research topic and rationale

Nowadays, banking is one of the most important financial channel for theeconomy Improving and expanding banking activities are the orientation and guidelinefor banks to survive and grow in the increasingly fierce competition Among that,credit activity is a vital field in the bank and decides most of other activities in thenational economy It is also a main source of creating profitability and decides theexistence and development of the bank

For a long time, most banks only focused on lending the production business butnot much paid attention to the final stage of producing – consuming Actually, whensociety increasingly grows, not only the enterprises need capital to make business andexpand the current market but the individual need more capital than ever before aswell People’s living standards are more and more improving, not only in need of basicnecessities like food, clothes but also tons of needs both in mental and physical life

People’s psychology has changed now, which considered borrowing as the need

to use the goods before liquidity To meet that need, banks have developed a new creditmode: consumer loans It contributes to raise bank’s revenue It means consumer loanshelp individual obtain capital to improve their lives

After studying the activities of Techcombank Hoang Quoc Viet for a period oftime, I found out that the bank was concerned about the consumer loans However, ithas not been actually the major activity of the bank Therefore, continuing research andoffering solutions would bring enormous significance for both theoretical and practicalaspects for the diversification of the bank’s activities

For this reason, the issue “Some solutions for the development of consumer lending atTechcombank Hoang Quoc Viet ” has been chosen for my internship report

Research questions

The report is mainly a descriptive analysis of available data to find out the answers tothe following questions:

1 What is consumer loans and its related features?

2 What is the current situation of consumer loans at Techcombank Hoang QuocViet? And what are the reasons for existing limitations?

3 How can consumer loans activity be better implemented at Techcombank HoangQuoc Viet?

4 Scope of the research

This report mainly aims at:

 Referring factors affecting the development of consumer loans

 Analyzing figures and data relating to the operations of consumer loans atTHQV

 Describing the THQV’s current situation of consumer loans

 Evaluating the effectiveness of those activities

 Suggesting some solutions to improve the branch’s competitiveness

Methodology

1 Desk research: the study is based on figures and information from TechcombankHoang Quoc Viet’s internal data and theory mainly from David Cox ( 1997 ),Modern Banking Operations

2 Other secondary data : information of Techcombank, THQV, Vietnam’seconomy and policies, etc were collected from the TV, internet, newspaper,magazines …

3 Primary data: Interviews to executive managers at the department of CreditActivities in THQV, as well as staff who directly involves in consumer loansoperations

CHAPTER 1 – INTRODUCTION 1.1 Introduction of Techcombank, Hoang Quoc Viet Branch

Moreover, with a network of nearly 200 transaction points nationwide withover 4,000 trained employees and leading position in technology when deployingmodern banking services, Techcombank is becoming familiar with the public andclients operating in many different fields such as engineering, technology, trade,service In recent years, Techcombank has been recognized as a strong brand inthe market of Vietnam

Techcombank Hoang Quoc Viet Branch was established in 1996 Since itsfoundation, it has created prestige and awesome images in each customer’s eyes.Mobilization of capital is a strength of THQV

1.1.2 Organizational Structure

Taking account of the organizational structure of THQV will give us aclearer and more comprehensive view of the branch which contributes to the betterevaluation of the whole business as well as the consumer loans activity The mainstructure of its organization and operation can be described in the following chart :

( Source : Techcombank Hoang Quoc Viet )

The organizational structure of the bank is arranged appropriately to meet thecustomer needs It is divided vertically with two customer segments, includingbusiness customers and individuals that correspond to corporate and individualsbanking sector Each department at T HQV has its particular tasks but still maintainclose relationship with each other under the control of the Board of Directors Beingaware of the important role of THQV in the whole system of Techcombank,managers and staff at THQV continually try their best and gain some encouragingresults in their business operation Banking management system was strengthenedwith the administration tool based on technology and reasonable processes,contributing significantly to the completion of the bank modernization program Inconsequently, THQV’s image and reputation contribute to the entire success ofTechcombank and is regarded as one of the four most efficient branches ofTechcombank

1.1.3 Functions and missions

Being one of the largest branches in the banking system of Techcombank,THQV provides a wide range of products and services for both corporate andindividual customers, namely: lending and loans, savings, money transfer, paymentand budgetary services, oversea remittance, FOREX, raising capital such as

Dpt ofAccountingand Budgetary

Dpt ofCapital andGeneralPlanning

Dpt ofHumanResources

Audit andInspectionTeam

deposits, bonds, debenture, etc.

THQV is also in charge of receiving capital investment trusts from theGovernment, economic organizations and national and international individuals.With the continuous development since its establishment and the goal of becoming

a leading commercial bank in Vietnam, Techcombank in general and THQV inparticular had a huge role in attracting temporarily idle capital in residential to meetlarge demand amounts of credit in the economy Capital, human resources, all thefactors affecting the operation of the banking sector have been invested in apowerful force In that sense, THQV has guided some following activities

• The common business goal: sustainable growth and stability, safety is thetop target that Techcombank set In 2012, they will make the efforts of outstandingloans as well as mobilization of capital growth and profit before tax of the averagegrowth in recent years

• Customers: In 2012, Techcombank will become increasingly onprofessional of consumer loans Techcombank’s customers are not only small andmedium businesses but also households, all individuals have the legal capacity withdemand for loans

• Diversification of products: the customer is always regarded as the center,always on top reputation and the bank has been building trust with the customer.Techcombank are upgrading product quality, especially the cosumer loans products

as these ones bring higher profits to the bank

1.2 Consumer loans activity in Hoang Quoc Viet Branch

1.2.1 Orientations for consumer loan period 2008-2012

Currently, lending activity is still one of the main and important activities inthe commercial banks in Vietnam The conversion of deposits into capital credits isnot only significant for the economy but also for the banks themselves Becauselending activity has created a major source of income to meet expenses such as,return on deposits and customer loans, offset business costs and generate profits forbanks The turnover of the HQVB was mainly collected from credit operations ,accounting for 90% of total revenue The performance has also improvedmarkedly, shown by increased revenue and profit before tax Prestige of the bankaugmented as well In recent years, credit was focused The branch concentrates allresources to extend credit to all economic sectors Expansion with the quality of

credit control, safety, efficiency and credit risk limitation are the main targets andmajor tasks of the branch.

In the near future, THQV should further promote the client, and thisapproach has attracted many groups of customers, different businesses Theconstruction of the financial mechanism in marketing and customer incentives issystematic, which creates a high competitiveness THQV should pay much attention

to the diversification and modernization of banking products and services ; continue

to improve the quality of non-credit services These conditions increase incomefrom service, prevent and limit risks

1.2.2 Overview of the current consumer loan activity and its shortcomings

The process of economic integration has been created for the commercialbanking system of our country many opportunities as well as new challenges In thiscontext, THQV has been constantly making efforts and innovation to survive andgrow The branch also has made certain achievements contributing to thesustainable development of the bank

THQV has been promoting its strengths, identifying the objectives consistentwith the scale and overall strategy of the bank It also determined the structuralchange to appropriate trend, changed the business structure by increasing thepercentage of revenue from service activities, but credit activities still take accountfor the largest share and bring more revenue for bank Credit activities of the branch

in recent years not only is in scale growth but its quality is also enhanced

In recent years, the branch network has been enlarged, expanded the scope and form

of lending to customers The orientation of the branch: expanding, strengtheningand improving the operational efficiency of the office agency To attract morecustomers, the branch concentrates to the expansion of lending methods in line withthe economic development, aimed at safe and effective credit quality.Although consumer loan activity has had many positive changes and achievedcertain results, it still exists some limitations of credit scale, range of credit productsand credit quality Because the branch did not take its full advantage and strength toget the best result Thus, it is important to further study the issue and find out someuseful solutions for the effiency of consumer loan activities at THQV Somerecommendations will be shown in the fourth chapter of this report

CHAPTER 2 : THEORETICAL FRAMEWORK 2.1 Definition of lending

Lending is a form of credit whereby bank transfers money directly to thecustomers using as their request or their consuming purposes during a specificperiod of time as agreed when they meet the requirements set out by the bank andmust repay both principal and interest This concept is applied by banks and othercredit institutions as the basic knowledge for the lending activities

an effect on the interest rate as well

 Furthermore, loans with or without collateral depend on the evaluation andthe customer’s ranking of the bank

The loan must be in a specific process of lending and debt collection It includesfive steps :

Step 1: Creating loan document

Step 2: Credit analyzing

Step 3: Deciding to grant credit loans

Step 4: Disbursing

Step 5: Monitoring debt collection and liquidating of the loan contract

After finishing the procedure of contract, customers are required to repay principaland interest or other equivalent agreements as approved before In case thecustomers do not carry out the contract, the collateral is under the decision of thebank

2.3 The history emergence of consumer loans

The crisis in the banking system started in the 1970s, when the brokers set up

"retail market" leads to competition among consumer finance companies,companies with commercial banking row This makes the market share of bankloans deteriorate Thus, in the early 1980s, the U.S Congress allowed banks toprovide more products and services to improve competitiveness for banks Besides

the commercial lending activities now they have developed more consumer loansand increasingly hold the position in this field.

In 1987, after 7 years of this legislation, the U.S Bank has provided 80% ofthe volume of consumer credit, of which 45% based on loan repayment It can beseen that this consumer loans has been officially recognized as a bankingprofessional Nowadays, consumer loans has grown strongly in the overall trend ofeconomic development in the world

In Vietnam, consumer loans thrive after Vietnam completed the final steps tojoin the world trade organization (WTO) In early 2009, consumer lending activityboomed Consumer lending is the top concern area not only for banks, consumers,but also for the state The consumer lending will be a cure for the global financialcrisis

2.4 Overview of consumer loans in Vietnam

Being aware of the benefits that consumer loans brings, many commercialbanks in Vietnam now has applied consumer lending activities Forms of personalcredit are very diverse, such as car loans, student, household goods, gold tradingloan, new home loan, house renovation, consumption loans for company’s staff andother services

Banks which have carried out personal credit activities consist of some owned commercial banks like VietinBank, Vietcombank, Agribank, BIDV Besides,joint stock banks are also participating actively such as SHB, ACB, MB, TienPhongBank, etc

state-Consumer loans activities are increasingly expanding, attracting muchattentions from banks, individuals and households In the near future, theseactivities will certainly develop more and more, not only banks but other financialinstitutions also

2.5 Definitions of consumer loans

2.5.1 The concept of consumer loans

Consumer loans can be understood with the following definitions:

 Consumer loans is a form of credit for consumers to finance theconsumption

 Consumer loans is a business in which the bank is the lender, borrower isindividuals, households, on the principle repayment of both principal and

interest after a certain time in the future to help consumers use goods andservices before they can afford, enable them to enjoy better living standards.

 Consumer loans is the economic relationship between a bank and anindividual consumer or household The bank transfer the money to customerswith the principle that the borrower will repay both principal and interest at aspecified time in the future

The concept of consumer loans though different from words, the basiccontent is referring to the expenditures of consumption of individual, households,those who wish to improve living standard but not enough to afford in present

These expenses are determined on the basis of prices for goods and servicesthat customers are demanding consumers and their ability to pay in the future

2.5.2 Characteristics of consumer loans

• The size and number of loans

Target customer of consumer loans is mainly person, household whosedemand is for consumption purposes Usually the loan is not large capital needs.Therefore, loans are small but the number of loans often plentiful and varied

• The client

Target customers of consumer lending are individuals and households those in need of goods and services to raise living standards rather than frombusiness purposes

-• The cost of a consumer loan

Consumer loan cost is much more than commercial lending Because theconsumer loan amount is not big, the loan term does not last long, while thenumber of loans varies In addition, the information of customers is incomplete,not fully accurate For these reasons, many banks take more costs from the stage

of receiving records, customer evaluation, to the stage of financing, and debtcollection

• The risk

It has higher level of risk compared with commercial loans because therepayment of the borrower depends primarily on income in their future But thefuture earnings is not fully guaranteed due to factors such as disease, illness, jobloss Though they have collateral assets, but sometimes it is not completelyclean or safe Assets that may be illegal or have been used to secure other loans,

or in the clearance

• Interest rate and profit

Due to consumer loans are great risks and the borrower must pay to get theutility gained from the procurement of consumer loan, interest rates shouldgenerally higher than commercial loans Survey of BCG Consulting Group alsofound that although consumer loans make up only 30% -35% of total loans butgenerates over 60% of the profits of Asia's leading commercial banks The reason issimple; fierce competition has led to credit businesses profitability declining,whereas consumer credit (including credit cards) has a strong growth rate

Especially the young and low-income people, they cannot wait to saveenough money to buy a house, car and other household appliances Consumer credithelp them get a stable life from young age, with the installment purchase what isneeded which gives them the great motivation to work, save, and raise children

2.5.3 Classification of consumer loans

• Based on the purpose

Residential consumer loans: loans to cater for the need to renovate, build orbuy house of individuals and households

Non-residential consumer loans: are those loans to the need of improving servicelife, such as car purchase, study

• Based on the form of loan security

Consumer loans with pledged assets: a form that consumer loan accounts aresecured by pledged assets

Consumer loans with collateral: a form of consumer loans that are secured bycollateral This property can be formed from loan capital or other assets Theborrower only has gives the bank the legal papers, proof of legal ownership of themortgaged property It does not need to transfer the lien of mortgages to the bank.Consumer loans without collateral: a form of loans that borrowers are officials andemployees have high income, job stability and long-term labor contracts Therepresentative is head of the agency or business They made household borrowingprocedures, collection of principal and interest for banks

• Based on the loan term

Short-term loan: These loans are commited that the borrowers will repay theloan and interest within 1 year from the date of receipt of the loan These loans areusually not great value, easy to be returned

Medium-term credit: The loans with a term from one to five years These

loans often have relatively large value and often used for investment in purchasingfixed assets, improving or renovating equipments and technologies, expandingproduction, building new small scale projects, etc with quick capital recovery Long-term loan: The loans with a term over 5 years The value is usually very largeand assets are often used in long time Long-term loan is mainly for houseconstruction, large- scale equipments and transport means, new enterprisesestablishment with longer capital recovery

• Based on lending manner

Consumer loans with installment payment: a form of payment that theborrower repay (both principal and interest) for each annuity This annuity is anagreement between the borrower and the bank

Consumer loans with periodic repayment: the form of borrowers pay dueprincipal and interest only one time

Revolving consumer loans: a form that banks allow customers to use creditcard or overdraft of cheque based on the current account The interest payment iscalculated in one of three ways:

o Interest is calculated based on the balance being adjusted: the balance

of interest used to calculate is the final balance of each cycle after thecustomer has paid the debt of the bank

o Interest is calculated based on the balance before adjustment: thebalance of interest is used to calculate the outstanding balance at theend of each term before debts are paid

o Interest is calculated according to average outstanding loans

o Based on the subjects participating in the lending process

Indirect consumer loans is the form of bank loans in which customers pay fordebts incurred when the the enterprises sell goods or services to consumers Bankslends through teams, groups, associations, etc These organizations often connecttheir members for a specific purpose, but mainly for the mutual support and benefitprotection for all members Banks could lend through the inflow product retailers inthe manufacturing process By this way, lending will avoid the case that theborrower uses money for illegal purposes

Direct consumer loans: the loans which banks and customers directly havecredit contract in agreement

2.6 The role of consumer loans

Consumer loan plays a huge role, not only bring big profits for the bank, theutility for consumers but also actually stimulates the development of production.Consumer loan business will be a key to our country's economy out of the financialcrisis quickly A big loan amount and low outstanding loans show the effectivenessoperation and good prestige of the bank

For consumers: Consumer loans help the borrowers enjoy amenities andservices using products that they are in demand but not enough to afford in present.For commercial banks: the profits earned from activities of consumer loans is huge.The average outstanding consumer loan of Asia investment bank only accounted forbetween 30% and 35% of total loans but accounted for 60% profit The bankingsector of our country is becoming more complete, furthermore, the State is creatingfavorable conditions for the development of bank activities It helps to facilitate thenetwork’s bank and diversify forms of loans, revenue’s bank will increaseaccordingly So in the near future, consumer loan activities in Vietnam will havestrong development and bring great benefit to the commercial banks.For the economy, society: activities of consumer loan help improve and raise livingstandards, contribute to a stable life and social stability Thanks to bank credit,temporarily idle funds will become more active, helping the customers carry outtheir own projects, contribute to promote the consumption rate, create more jobsand speed up the capital flow The financial relations in society become morehealthy For example, the phenomenon of usury is reduced, society will not worriedabout the crime any more Thereby, it plays a vital role in promoting the economicgrowth

2.7 Benefits of consumer loans

Consumer loans is playing a spectacular role not only for banks, forcustomers but the economy as well Some of its main advantages are listed below.For banks: consumer loans contributes to improve the competitiveness capabilitywith other banks and credit instutions, attract new customers and then expand therelationships with them By enhancing the network, diversifying products,improving the quality of consumer loans services, the number of customers willgrow more and more Thus, the bank will gain better reputation

Consumer lending is also an effective marketing tool When the bankincreasingly attracts the attention of population, it can mobilize more and more

capital deposited Thereby, it helps to improve the income and decrease the risks tothe bank.

For customers: Owing to the consumer loans, customers will have anopportunity to enjoy better living conditions , take pleasure in the facilities beforeaccumulating enough money and lastly, it can meet their unexpected and urgentneeds such as spending on health and education or purchasing as well

However, customers need to calculate both the expenditure reasonably andensure the affordability, not exceeding the permitted level

For economy: Consumer loans enhances the spending on goods and services,which enables the demand stimulation domestically Thanks to consumer lending,enterprises have been speeding up consuming pace, banks have been shorteningcirculation term, simultaneously promoting economic growth

2.8 Factors affecting the activity of consumer loans

Today, commercial banks increasingly focus on consumer loan They hopethat the activity of consumer loan will bring the biggest source of profit to them.However, to operate consumer loan effectively, they need carefully analyze thefactors that influence positively and negatively to activities of consumer loan; thengive the strategy, the specific measures for development The factors directly affectthe activity consumer loan are the client, the bank itself and the factors of socio-economic environment

2.8.1Customers

 The leading important factor, determining factor activity of consumer loan iscustomers Demand of customers actually increase and they really want toturn their demands into reality that the activities of consumer loan develop aswell

 The regular income of the customer is greater, the repayment capacity ofcustomers is higher Accordingly, consumer loan more likely to develop

 Culture of the consumer population also affects the consumer loan Youngpeople now have a change in thinking and trends It is the shift from savings

to enjoy legitimately Therefore, the expanding of consumer loan at this time

is very suitable and profitable

 Culture of the debtor is also a very important factor That culture embodies

in legal capacity and credibility